## Report on the Insolvency and Bankruptcy Board of India Insolvency Resolution Process for Corporate Persons Second Amendment Regulations, 2021
**1. Executive Summary:**
This report analyzes the Insolvency and Bankruptcy Board of India (IBBI) Insolvency Resolution Process for Corporate Persons Second Amendment Regulations, 2021, as published on July 14, 2021. This amendment modifies the existing Insolvency Resolution Process for Corporate Persons Regulations, 2016. The core purpose of these amendments is to refine the process for corporate insolvency resolution by clarifying the roles and responsibilities of interim and resolution professionals, introducing a new disclosure requirement for changes in the corporate debtor's name or address, modifying rules for appointment of professionals, and streamlining certain procedural aspects. The key findings highlight changes related to professional appointments, disclosures, and regulatory filings.
**2. Introduction:**
This report provides an informative overview of the Insolvency and Bankruptcy Board of India Insolvency Resolution Process for Corporate Persons Second Amendment Regulations, 2021 (hereinafter referred to as "the Amendment"), based solely on the text of the notification published by the IBBI. The report aims to provide a clear understanding of the changes introduced and their potential implications.
**3. Policy Overview:**
* This document amends the Insolvency and Bankruptcy Board of India Insolvency Resolution Process for Corporate Persons Regulations, 2016.
* The core objective, as inferred from the text, is to improve the efficiency, transparency, and accountability of the corporate insolvency resolution process (CIRP) by clarifying roles, adding disclosure requirements, and refining professional appointment guidelines.
**4. Background and Rationale:**
The amendment appears designed to address certain operational challenges or ambiguities within the original 2016 regulations. Specifically, the text suggests a need for:
* Clarification regarding the responsibilities of interim resolution professionals versus resolution professionals.
* Increased transparency regarding changes in the corporate debtor's identity to prevent potential concealment of information.
* Enhanced guidelines for the appointment of professionals to ensure objectivity and prevent conflicts of interest.
* A streamlined and more clearly defined regulatory process.
**5. Key Provisions / Changes:**
The following are the key changes introduced by the Amendment:
* **Regulation 3 (Role of Resolution Professionals):** The amendment clarifies that the roles and responsibilities defined in the regulation apply to both interim resolution professionals *and* resolution professionals. This replaces previous wording that only referred to "a resolution professional." A new provision is added to subregulation 3, barring an interim or resolution professional from continuing in their role if their insolvency professional entity (or a partner/director thereof) represents another stakeholder in the CIRP. *Effect:* This change aims to prevent conflicts of interest and ensure the impartiality of the resolution professional.
* **Regulation 4 (Role of Interim Resolution Professionals):** Similar to Regulation 3, the language is updated to apply to both interim resolution professionals and resolution professionals.
* **Regulation 4A (Role of Insolvency Professionals):** Changes the words "insolvency professionals" to "resolution professional" to clarify the applicable professionals.
* **Regulation 4B (Disclosure of Change in Name and Address of Corporate Debtor):** A new regulation is inserted requiring the interim resolution professional or resolution professional to disclose all former names and registered office addresses of the corporate debtor (within the two years preceding the insolvency commencement date) in all communications and documents. *Effect:* This provision aims to enhance transparency and prevent the concealment of a corporate debtor's past identity, potentially uncovering hidden liabilities or fraudulent activities.
* **Regulation 9A:** Amends a reference to include regulation 8A to ensure consistency in the regulatory references.
* **Regulation 13:** Allows for corporate debtors *or* their authorized representatives to be involved.
* **Regulation 19:** Similar to Regulation 3, the language is updated to apply to both interim resolution professionals and resolution professionals.
* **Regulation 27 (Appointment of Professionals):** The regulation is entirely substituted. It mandates the resolution professional to appoint two registered valuers within seven days of their appointment (but not later than the 47th day from the insolvency commencement date) to determine the fair value and liquidation value of the corporate debtor. It also allows for the appointment of other professionals, as needed, following an objective and transparent process, and explicitly prohibits the appointment of certain related parties. *Effect:* This change seeks to standardize the valuation process, ensure that professionals are appointed impartially and at arm's length, and prevent conflicts of interest. The direct payment of fees to professionals is also mandated.
* **Regulation 35A:** A minor change deletes "under intimation to the Board," simplifying this process.
* **Regulation 40B:** Requires the resolution professional to file Form CIRP 8 intimating details of their opinion and determination under regulation 35A on or before the one hundred and fortieth day of the insolvency commencement date. The text includes a proviso related to the effective date of the amendment. *Effect:* Establishes a clear deadline for filing Form CIRP 8 and links it to the amendment's effective date.
* **Form H:** Deletes a reference to Regulation 35A and adds a new item (14A) related to the resolution professional's actions under regulation 35A, requiring them to confirm whether they applied to the Adjudicating Authority and filed Form CIRP 8.
**6. Target Audience and Stakeholders:**
Based on the text, the primary target audience and stakeholders include:
* Interim Resolution Professionals (IRPs) and Resolution Professionals (RPs).
* Insolvency Professional Entities (IPEs).
* Corporate Debtors.
* Registered Valuers.
* The Insolvency and Bankruptcy Board of India (IBBI).
* Adjudicating Authority.
**7. Implementation Aspects (Inferred):**
* **Responsible Agency:** The Insolvency and Bankruptcy Board of India (IBBI) is the primary regulatory body responsible for overseeing the implementation of these amendments.
* **Timelines:** Specific timelines are mentioned for the appointment of registered valuers (within seven days of the RP's appointment, but not later than the 47th day from the insolvency commencement date) and for filing Form CIRP 8 (on or before the one hundred and fortieth day of the insolvency commencement date).
* **Procedures:** The amendment emphasizes the need for objective and transparent processes in the appointment of professionals.
**8. Expected Outcomes / Impact of Changes:**
The expected outcomes of these amendments include:
* **Enhanced Clarity and Efficiency:** Clearer guidelines for IRPs and RPs should streamline the CIRP.
* **Increased Transparency:** The disclosure requirement for changes in the corporate debtor's name and address should enhance transparency and reduce the risk of concealment.
* **Reduced Conflicts of Interest:** Stricter rules for the appointment of professionals should minimize conflicts of interest and ensure impartiality.
* **Improved Valuation Process:** Standardized valuation procedures should lead to more reliable and consistent valuations of corporate debtors.
* **Better Regulatory Oversight:** Enhanced reporting requirements (Form CIRP 8) should facilitate better monitoring by the IBBI.
**9. Conclusion:**
The Insolvency and Bankruptcy Board of India Insolvency Resolution Process for Corporate Persons Second Amendment Regulations, 2021, represent a significant step towards refining and strengthening the corporate insolvency resolution process in India. By clarifying roles, enhancing transparency, and promoting objectivity, these amendments are likely to improve the efficiency and fairness of the CIRP, ultimately contributing to a more robust and reliable insolvency framework. The amendments reinforce the IBBI's commitment to effective regulation and continuous improvement in the insolvency resolution ecosystem.
Key Entities Referenced
Insolvency and Bankruptcy Board of India: An organization established under the Insolvency and Bankruptcy Code of 2016.
Insolvency and Bankruptcy Code, 2016: A law enacted in 2016 related to insolvency and bankruptcy proceedings in India.
Insolvency Resolution Process for Corporate Persons Second Amendment Regulations, 2021: Regulations amending the Insolvency Resolution Process for Corporate Persons Regulations.
Official Gazette: Official government publication for notifications.
Insolvency Resolution Process for Corporate Persons Regulations, 2016: Regulations pertaining to the insolvency resolution process for corporate entities.
New Delhi: The location where the notification was issued; a city in India.
Insolvency Resolution Process for Corporate Persons Amendment Regulations, 2021: Regulations amending the Insolvency Resolution Process for Corporate Persons.
Form CIRP 8: A form related to corporate insolvency resolution process.
Adjudicating Authority: Authority to which application is made.
Dr. Navrang Saini: Wholetime Member of Insolvency and Bankruptcy Board of India.
Government of India Press, Ring Road, Mayapuri, New Delhi110064: Location of Government of India Press.
Delhi110054: Location of Controller of Publications.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
xxxGIDHxxx
सी.जी.-डी.एxलxx.-GअID.-E1x4x0x 72021-228297
CG-DL-E-14072021-228297
ऄसाधारण
EXTRAORDINARY
भाग III—खण् ड 4
PART III—Section 4
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 284] नइ ददल्ली, बधु वार, िुलाइ 14, 2021/अषाढ़ 23, 1943
No. 284] NEW DELHI, WEDNESDAY, JULY 14, 2021/ASHADHA 23, 1943
भारतीय ददवाला और िोधन ऄक्षमता बोड ड
ऄजधसचू ना
नइ ददल्ली, 14 िुलाइ, 2021
भारतीय ददवाला और िोधन ऄक्षमता बोडड (कारपोरेट व्यजियों के जलए ददवाला समाधान प्रदिया)
(दसू रा सिं ोधन) जवजनयम, 2021
स.ं अइ.बी.बी.अइ./2021-22/िी.एन./अर.इ.िी.075.—भारतीय ददवाला और िोधन ऄक्षमता बोडड, ददवाला
और िोधन ऄक्षमता संजहता, 2016 (2016 का 31) की धारा 240 के साथ पठित धारा 196 की ईपधारा (1) के खंड (न)
द्वारा प्रदत्त िजियों का प्रयोग करत े हुए, भारतीय ददवाला और िोधन ऄक्षमता बोड ड (कारपोरेट व्यजियों के जलए ददवाला
समाधान प्रदिया) जवजनयमन, 2016 का और संिोधन करने के जलए जनम्नजलजखत जवजनयम बनाता है, ऄथाडत:् -
1. (1) आन जवजनयमों का संजक्षप्त नाम भारतीय ददवाला और िोधन ऄक्षमता बोडड (कारपोरेट व्यजियों के जलए ददवाला
समाधान प्रदिया) (दसू रा संिोधन) जवजनयम, 2021 ह ै।
(2) ये रािपत्र म ेंप्रकािन की तारीख को प्रवृत्त होंग े ।
(3) य े चालू और आन जवजनयमों के प्रवृत्त होने की तारीख को या ईसके पश्चात् प्रारंभ होन े वाली प्रत्येक कारपोरेट
ददवाला समाधान प्रदिया को लागू होंग े ।
2. भारतीय ददवाला और िोधन ऄक्षमता बोड ड (कारपोरेट व्यजियों के जलए ददवाला समाधान प्रदिया) जवजनयमन,
2016 (जिन्ह ेंआसमें आसके पश्चात् ‘मूल जवजनयम’ कहा गया ह)ै के जवजनयम 3 में,-
3883 GI/2021 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
(i) ईप-जवजनयम (1) म,ें “समाधान व्यावसाजयक” िब्दों के स्ट्थान पर “यथाजस्ट्थजत, ऄंतठरम समाधान व्यावसाजयक
या समाधान व्यावसाजयक” िब्द रख ेिाएंग;े
(ii) ईप-जवजनयम (2) में, “समाधान व्यावसाजयक” िब्दों के स्ट्थान पर “यथाजस्ट्थजत, ऄतं ठरम समाधान व्यावसाजयक
या समाधान व्यावसाजयक” िब्द रख ेिाएंग;े
(iii) ईप-जवजनयम (3) के स्ट्थान पर जनम्नजलजखत ईप-जवजनयम रखा िाएगा, ऄथाडत:् -
“(3) कोइ ऄंतठरम समाधान व्यावसाजयक या कोइ समाधान व्यावसाजयक, िो दकसी ददवाला व्यावसाजयक संस्ट्था
का जनदेिक या भागीदार ह,ै दकसी कारपोरेट ददवाला समाधान प्रदिया में यथाजस्ट्थजत, ऄंतठरम समाधान
व्यावसाजयक या समाधान व्यावसाजयक के रूप में कायड िारी नह रखगे ा यदद ददवाला व्यावसाजयक संस्ट्था या ससी
ददवाला व्यावसाजयक संस्ट्था का कोइ ऄन्य भागीदार या जनदेिक ईसी कारपोरेट ददवाला समाधान प्रदिया में दकसी
ऄन्य जहतधारक का प्रजतजनजधत्व करता ह ै।”।
3. मूल जवजनयमों के जवजनयम 4 में, “ऄस्ट्थायी समाधान व्यावसाजयक” िब्दों के स्ट्थान पर, “यथाजस्ट्थजत, ऄंतठरम
समाधान व्यावसाजयक या समाधान व्यावसाजयक” िब्द रखे िाएंगे ।
4. मूल जवजनयम के जवजनयम 4क के ईप-जवजनयम (2) के खंड (ख) म,ें “ददवाला व्यावसाजयक” िब्दों के स्ट्थान पर
“समाधान व्यावसाजयक” िब्द रखे िाएंगे ।
5. मूल जवजनयमों में, जवजनयम 4क के पश्चात्, जनम्नजलजखत जवजनयम ऄंतःस्ट्थाजपत दकया िाएगा, ऄथाडत्:-
“4ख. कारपोरेट ऋणी के नाम और पत ेम ेंपठरवतनड का प्रकटन
िहां दकसी कारपोरेट ऋणी ने ददवाला प्रारंभ होने की तारीख से पूवडवती दो वषों के दौरान ऄपन े नाम,
रजिस्ट्रीकृत कायाडलय पते में पठरवतडन दकया ह ै वहां यथाजस्ट्थजत, ऄतं ठरम समाधान व्यावसाजयक या समाधान
व्यावसाजयक, प्रत्येक संसूचना, ऄजभलेख, कायडवाही या दकसी ऄन्य दस्ट्तावेज़ में चालू नाम और रजिस्ट्रीकृत कायाडलय
पते के साथ-साथ, आस प्रकार पठरवर्ततत सभी पूवडवती नाम(नामों) और रजिस्ट्रीकृत पते(पतो) को प्रकट करेगा ।”।
6. मूल जवजनयम के जवजनयम 9क के ईप-जवजनयम (1) में, “जवजनयम 7, 8 और 9” िब्दों और ऄंकों के स्ट्थान पर
“जवजनयम 7, 8, 8क या 9” िब्द और ऄंक रखे िाएंगे।
7. मूल जवजनयम के जवजनयम 13 के ईप-जवजनयम (2) के खंड (ख) म,ें “कारपोरेट ऋणी के सदस्ट्यों, भागीदारों,
जनदेिकों और गारंटी दाता” िब्दों के पश्चात,् “या ईनके प्राजधकृत प्रजतजनजधयों” िब्द ऄंतःस्ट्थाजपत दकए िाएगं े ।
8. मूल जवजनयमों के जवजनयम 19 के ईप-जवजनयम (1) में, “समाधान व्यावसाजयक” िब्दों के स्ट्थान पर “यथाजस्ट्थजत,
ऄंतठरम समाधान व्यावसाजयक या समाधान व्यावसाजयक” िब्द रख ेिाएंगे ।
9. मूल जवजनयमों में, जवजनयम 27 के स्ट्थान पर, जनम्नजलजखत जवजनयम रखा िाएगा, ऄथाडत्:-
“27. व्यावसाजयक की जनयजु ि
(1) समाधान व्यावसाजयक, ऄपनी जनयुजि के सात ददन के भीतर दकन्त ु ददवाला प्रारंभ होने की तारीख स े
सैंतालीसवें ददन के ऄपश्चात्, जवजनयम 35 के ऄनुसार कारपोरेट ऋणी के ऋिु मल्ू य और समापन मल्ू य का ऄवधारण
करने के जलए दो रजिस्ट्रीकृत मल्ू यांकक जनयुि करेगा ।
(2) यथाजस्ट्थजत, ऄंतठरम समाधान व्यावसाजयक या समाधान व्यावसाजयक, ईप-जवजनयम (1) के ऄधीन
रजिस्ट्रीकृत मूल्यांककों के ऄजतठरि, कारपोरेट ददवाला समाधान प्रदिया के संचालन में ऄपने कतडव्यों का जनवडहन
करने म ें ऄपनी सहायता के जलए दकसी व्यावसाजयक को जनयुि कर सकेगा, यदद ईसकी यह राय ह ै दक सस े
व्यावसाजयक की सेवाएं ऄपेजक्षत ह ैंऔर ससी सेवाएं कारपोरेट ऋणी के पास ईपलब्ध नह ह ैं।
(3) यथाजस्ट्थजत, ऄंतठरम समाधान व्यावसाजयक या समाधान व्यावसाजयक, आस जवजनयम के ऄधीन दकसी
व्यावसाजयक को जनष्पक्ष रूप स ेएक वस्ट्तपु रक और पारदिी प्रदिया का ऄनुसरण करते हुए जनयुि करेगा:
परन्त ुजनम्नजलजखत व्यजियों को जनयुि नह दकया िाएगा, ऄथाडत्:-[भाग III—खण् ड 4] भारत का रािपत्र : ऄसाधारण 3
(क) समाधान व्यावसाजयक का कोइ नातेदार;
(ख) कारपोरेट ऋणी का कोइ नातेदार;
(ग) ददवाला प्रारंभ होन े की तारीख से पूवडवती पांच वषों के दौरान दकसी भी समय कारपोरेट ऋणी का कोइ
लेखापरीक्षक;
(घ) ससी ददवाला व्यावसाजयक संस्ट्था का कोइ भागीदार या जनदेिक, जिसका समाधान व्यावसाजयक एक
भागीदार या जनदिे क ह ै।
(4) आस जवजनयम के ऄधीन जनयुि दकए गए व्यावसाजयक की फीस और ईसके द्वारा ईपगत ऄन्य व्यय के
जलए बीिक व्यावसाजयक के नाम में प्रस्ट्ततु दकए िाएगं े और ईनका भुगतान सीधे ससे व्यावसाजयक के बैंक खाते में
दकया िाएगा ।”
10. मलू जवजनयमों के जवजनयम 35क के ईप-जवजनयम (2) म,ें “बोडड को सूजचत करते हुए” िब्दों का लोप दकया िाएगा ।
11. मूल जवजनयमों के जवजनयम 40ख में, ईप-जवजनयम (1क) के पश्चात् जनम्नजलजखत ईप-जवजनयम ऄतं ःस्ट्थाजपत दकया
िाएगा, ऄथाडत:् -
“(1ख) समाधान व्यावसाजयक, जवजनयम 35क के ऄधीन ऄपनी राय और ऄवधारणा के ब्यौरे सूजचत करत े हुए,
ददवाला प्रारंभ होन े के एक सौ चालीसवें ददन या ईससे पूवड, प्ररूप सी.अइ.अर.पी. 8 फाआल करेगा:
परन्त ु प्ररूप सी.अइ.अर.पी. 8 का फाआल दकया िाना तब तक देय नह हो िाएगा िब तक दक भारतीय
ददवाला और िोधन ऄक्षमता बोडड (कारपोरेट व्यजियों के जलए ददवाला समाधान प्रदिया)(दसू रा संिोधन) जवजनयम,
2021 के प्रारंभ की तारीख स ेतीस ददन की ऄवजध समाप्त न हो गइ हो ।”
12. मूल जवजनयम के प्ररूप ि में,-
(i) मद 9 के नीचे, सारणी म,ें “जवजनयम 35क” से संबंजधत प्रजवजि का लोप दकया िाएगा ।
(ii) मद 14 के पश्चात,् जनम्नजलजखत मद ऄंतःस्ट्थाजपत की िाएगी, ऄथातड ्:-
“14क. क्या समाधान व्यावसाजयक ने जवजनयम 35क के ऄनुसार,-
(क) ददवाला प्रारंभ होने की तारीख के एक सौ पैंतीसवें ददन या ईससे पूवड न्यायजनणाडयक प्राजधकारी को
अवेदन दकया ह:ै
हा/ं नह
(ख) ददवाला प्रारंभ होन े की तारीख के एक सौ चालीसवें ददन या ईससे पूव ड बोड ड के समक्ष प्ररूप
सी.अइ.अर.पी. 8 फाआल दकया है:
हा/ंनह ।”
डॉ. नवरंग सैनी, पूणडकाजलक सदस्ट्य
[जवज्ञापन-III/4/ऄसा./149/2021-22]
ठटप्पण: भारतीय ददवाला और िोधन ऄक्षमता बोडड (कारपोरेट व्यजियों के जलए ददवाला समाधान प्रदिया) जवजनयमन,
2016, भारत के रािपत्र, ऄसाधारण, भाग III, खंड 4, स.ं 432, तारीख 30 नवम्बर, 2016 म ें ऄजधसूचना स.ं
अइ.बी.बी.अइ./2016-17/िी.एन./अर.इ.िी.004, तारीख 30 नवम्बर, 2016 द्वारा प्रकाजित दकए गए थ ेऔर
ईनम ें ऄंजतम संिोधन भारत के रािपत्र, ऄसाधारण, भाग III, खंड 4, सं. 98, तारीख 15 माच,ड 2021 म,ें
ऄजधसूचना स.ं अइ.बी.बी.अइ./2020-21/िी.एन./अर.इ.िी.070, तारीख 15 माच,ड 2021 द्वारा प्रकाजित
भारतीय ददवाला और िोधन ऄक्षमता बोडड (कारपोरेट व्यजियों के जलए ददवाला समाधान प्रदिया) (संिोधन)
जवजनयम, 2021 द्वारा दकया गया था ।4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
INSOLVENCY AND BANKRUPTCY BOARD OF INDIA
NOTIFICATION
New Delhi, the 14th July, 2021
Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons)
(Second Amendment) Regulations, 2021.
No. IBBI/2021-22/GN/REG075.—In exercise of the powers conferred by clause (t) of sub-section (1) of
section 196 read with section 240 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), the Insolvency
and Bankruptcy Board of India hereby makes the following regulations further to amend the Insolvency and
Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, namely: -
1. (1) These regulations may be called the Insolvency and Bankruptcy Board of India (Insolvency Resolution
Process for Corporate Persons) (Second Amendment) Regulations, 2021.
(2) They shall come into force on the date of their publication in the Official Gazette.
(3) They shall apply to every corporate insolvency resolution process ongoing or commencing on or after the
date of coming into force of these regulations.
2. In the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons)
Regulations, 2016 (hereinafter referred to as „the principal regulations‟), in regulation 3,-
(i) in sub-regulation (1), for the words “a resolution professional”, the words “an interim resolution professional
or a resolution professional, as the case may be,” shall be substituted;
(ii) in sub-regulation (2), for the words “a resolution professional”, the words “an interim resolution
professional or a resolution professional, as the case may be,” shall be substituted;
(iii) for sub-regulation (3), the following sub-regulation shall be substituted, namely:-
“(3) An interim resolution professional or a resolution professional, who is a director or a partner of an
insolvency professional entity, shall not continue as the interim resolution professional or resolution
professional, as the case may be, in a corporate insolvency resolution process, if the insolvency professional
entity or any other partner or director of such insolvency professional entity represents any other stakeholder in
that corporate insolvency resolution process.”.
3. In the principal regulations, in regulation 4, for the words “interim resolution professional”, the words “interim
resolution professional or the resolution professional, as the case may be,” shall be substituted.
4. In the principal regulations, in regulation 4A, in sub-regulation (2), in clause (b), for the words “insolvency
professionals”, the words “resolution professional” shall be substituted.
5. In the principal regulations, after regulation 4A, the following regulation shall be inserted, namely:-
“4B. Disclosure of change in name and address of corporate debtor.
Where a corporate debtor has changed its name or registered office address during the period of two years
preceding the insolvency commencement date, the interim resolution professional or resolution professional, as
the case may be, shall disclose all the former name(s) and registered office address(es) so changed along with
the current name and registered office address in every communication, record, proceeding or any other
document.”
6. In the principal regulations, in regulation 9A, in sub-regulation (1), for the word and figures “regulation 7, 8 or
9,”, the word and figures “regulation 7, 8, 8A or 9,” shall be substituted.
7. In the principal regulations, in regulation 13, in sub-regulation (2), in clause (b), after the words “corporate
debtor”, the words “or their authorised representatives” shall be inserted.
8. In the principal regulations, in regulation 19, in sub-regulation (1), for the words “the resolution professional”,
the words “the interim resolution professional or the resolution professional, as the case may be,” shall be
substituted.
9. In the principal regulations, for regulation 27, the following regulation shall be substituted, namely:-
“27. Appointment of Professionals.
(1) The resolution professional shall, within seven days of his appointment but not later than forty-seventh day
from the insolvency commencement date, appoint two registered valuers to determine the fair value and the
liquidation value of the corporate debtor in accordance with regulation 35.[भाग III—खण् ड 4] भारत का रािपत्र : ऄसाधारण 5
(2) The interim resolution professional or the resolution professional, as the case may be, may appoint any
professional, in addition to registered valuers under sub-regulation (1), to assist him in discharge of his duties in
conduct of the corporate insolvency resolution process, if he is of the opinion that the services of such
professional are required and such services are not available with the corporate debtor.
(3) The interim resolution professional or the resolution professional, as the case may be, shall appoint a
professional under this regulation on an arm‟s length basis following an objective and transparent process:
Provided that the following persons shall not be appointed, namely: -
(a) a relative of the resolution professional;
(b) a related party of the corporate debtor;
(c) an auditor of the corporate debtor at any time during the period of five years preceding the insolvency
commencement date;
(d) a partner or director of the insolvency professional entity of which the resolution professional is a partner or
director.
(4) The invoice for fee and other expenses incurred by a professional appointed under this regulation shall be
raised in the name of the professional and be paid directly into the bank account of such professional.”
10. In the principal regulations, in regulation 35A, in sub-regulation (2), the words “under intimation to the Board”
shall be deleted.
11. In the principal regulations, in regulation 40B, after sub-regulation (1A), the following sub-regulation shall be
inserted, namely: -
“(1B) The resolution professional shall file Form CIRP 8 intimating details of his opinion and determination
under regulation 35A, on or before the one hundred and fortieth day of the insolvency commencement date:
Provided that the filing of Form CIRP 8 shall not become due unless a period of thirty days has elapsed
from the date of commencement of the Insolvency and Bankruptcy Board of India (Insolvency Resolution
Process for Corporate Persons) (Second Amendment) Regulations, 2021.”
12. In the principal regulations, in Form H,-
(i) under item 9, in the table, the entry „Regulation 35A‟ shall be deleted.
(ii) after item 14, the following item shall be inserted, namely:-
“14A. Whether the resolution professional has, in accordance with regulation 35A,-
(a) applied to the Adjudicating Authority on or before the one hundred and thirty-fifth day of the insolvency
commencement date: Yes / No
(b) filed Form CIRP 8 with the Board on or before the one hundred and fortieth day of the insolvency
commencement date: Yes / No”
Dr. NAVRANG SAINI, Whole-time Member
[ADVT.-III/4/Exty./149/2021-22]
Note: The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons)
Regulations, 2016 were published vide notification No. IBBI/2016-17/GN/REG004, dated 30th
November, 2016 in the Gazette of India, Extraordinary, Part III, Section 4, No. 432 on 30th November,
2016 and were last amended by the Insolvency and Bankruptcy Board of India (Insolvency Resolution
Process for Corporate Persons) (Amendment) Regulations, 2021 published vide notification No.
IBBI/2020-21/GN/REG070, dated the 15th March, 2021 in the Gazette of India, Extraordinary, Part III,
Section 4, No. 98 on 15th March, 2021.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.